Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be which of the following?

A) debit Bad Debt Expense; credit Allowance for Doubtful AccountsB) debit Bad Debt Expense; credit Accounts ReceivableC) debit Sales Returns and Allowance; credit Accounts ReceivableD) debit Allowance for Doubtful Accounts; credit Accounts Receivable.

Question

Cesar Hicks

Business

5 October, 01:49

Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be which of the following?

A) debit Bad Debt Expense; credit Allowance for Doubtful AccountsB) debit Bad Debt Expense; credit Accounts ReceivableC) debit Sales Returns and Allowance; credit Accounts ReceivableD) debit Allowance for Doubtful Accounts; credit Accounts Receivable.

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Answers (1)

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Camryn Osborn · Answer 1

Answer: The entry to write off this account would be debit Bad Debt Expense; credit Accounts Receivable.

Here in this case Lowrey uses the direct write-off method of accounting for uncollectible accounts receivable.

Therefore the correct option in this case is (b).